Open innovation (OI) has become one of the main paradigms in innovation management. It builds on the idea that an innovating organization needs to capture external ideas, knowledge, and technologies to enhance its innovation process (inbound or outside-in OI). At the same time, organizations shall also utilize internal technologies and knowledge to provide it as an input for the innovation process of other companies (outbound or inside-out OI). Successful innovators are championing open innovation as having the potential to become “the new project management principle for the 21st Century”. They belong to a select group of leading companies that have successfully adopted open innovation, and are demonstrating impressive results. But many others are moving slowly or stumbling along the way.
The objective of this seminar is to provide a detailed overview of the background, opportunities, tools and methods of OI, but also of challenges of implementing OI in an established organization. The seminar will focus on both OI with customers and (lead) users, i.e. OI at the frontend of innovation process to gather market insights, generate ideas and co-create concepts, and on OI in the development stage, i.e. engaging communities for technical problem solving. Students will learn what is open innovation, and how is it different to other forms of cooperation in the innovation process, some recent best practice studies on open innovation, a review of the tools and measure to integrate external knowledge in the innovation process, the opportunities and challenges connected with this strategy, how to implement open innovation successfully and what are future developments of open innovation.
Course agenda :
1. What is OI?
2. How does OI work?
3. How to manage OI strategies?
1. What is OI? - The 1st module of this seminar is about why we should study open innovation (OI)? This module is about known facts, including concepts, terms, principles, model types. Students will learn about four generations of innovation management, all building on a different understanding about the key priority in managing innovation in larger organizations. We argue that OI is about orchestrating a innovation ecosystem which is becoming the core of innovation management today and a core competence to develop.
2. How does OI work? - The 2nd module of this seminar is about OI at the frontend of innovation, i.e. the first stages of opportunity recognition, discovery, and ideation of the innovation process. A frequently used synonymous term for this is customer “co-creation”. Lead users are “extreme” users that not just have problems with existing solutions, but engage in innovative activities to solve their own problems. As they “foreshadow” general demand, they are important sources of input for a firm’s innovation process. Companies can either engage in discovering and transferring existing lead user inventions, or they can create an arena where they co-create with innovative users and customers.
3. How to manage OI strategies? - The 4th module of this seminar is about OI implementation. Based on our research and experience from many projects, the successful implementation of OI demands not just tools and methods to acquire external knowledge and ideas for innovation. Firms also need to establish internal capabilities to bring these inputs into practice. Many companies are still failing in exploiting external input internally. These firms lack "open innovation readiness". This module will discuss the drivers and components that define an organization's open innovation readiness.